Meta Plunges, Ford Slides, Eli Lilly Gains After Boosting Sales View - podcast episode cover

Meta Plunges, Ford Slides, Eli Lilly Gains After Boosting Sales View

Apr 30, 20264 min
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Episode description

On this episode of Stock Movers:
- Meta (META US) shares plunge after the company raised its spending outlook for the year, driven by its AI strategy and higher component pricing. The social media giant projected full-year capital expenditures of $125 billion to $145 billion, exceeding analysts' estimates, and is kicking off a bond sale of between $20 billion and $25 billion in debt.
- Ford (F) shares slide. The automaker raised its full-year profit outlook due to demand for high-margin pickups and SUVs, but warned of pressure from an unexpected rise in commodity costs. The company expects to earn as much as $10.5 billion before interest and taxes this year, and also expects a $2 billion profit hit from rising commodity prices such as steel and aluminum.
- Eli Lilly (LLY) shares gain. The company raised its annual sales and profit forecast due to high demand for obesity medications and its new weight-loss pill. The company now sees 2026 sales rising to as much as $85 billion and 2026 profits in the range of $35.50 a share to $37 a share.

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Transcript

Speaker 1

Bloomberg Audio Studios, podcasts, radio news.

Speaker 2

The Stock Movers Report, your roundup of companies making moves in the stock market, harnessing the power of Bloomberg data.

Speaker 1

Let's take a look at some of the stocks on the move today. We can do that with Bloomberg's It needs a Secovia, it needs what are you looking at today? Everyone's talking about Magnificent said, and let's look at Meadow, which is seeing pretty negative reactions after the report. Shares plunged about ten percent. Here today the drop is pretty bad as well. It's more than eight percent. Tick, of course, is meant that the company raised its pended outlook yet again.

The number everyone is looking at is their full year capital expenditure, which now they expect to be between one hundred and twenty five billion two hundred and forty five billion. This is for the whole year. I'm looking at the chart of how this has changed over time, and it's really a drastic change. Just in twenty twenty four it was less than forty billion. Now we're talking more than one hundred and fifty billion. You can see the reaction

from investors is obviously not so positive. Zuckerber has said that his company was paying hundreds of billions of dollars on AI, and now we see memory cheap shortage is triggering shurge in prices. Investors are getting worried. We saw similar thing from Amazon, we saw similar thing from Alphabet, but much more positive reaction. It seems like a meta has been on this strike where they increase capital expenditure. Investors sometimes are excited, but then they get worried that

maybe they're behind on AI. And this is what's happening today.

Speaker 2

I lost count of how many times you said the word billions because numbers are so large. Let's talk about Ford.

Speaker 1

For Ford is also having a pretty rough day. They actually had a strong earnings report. The ticker, of course, is F but Ford warned of pressure from an unexpected rise in commodity costs. We've seen a similar warning from General Motors, so clearly this is affecting the whole industry, is booking investors. Despite the relatively strong report, shares fell as much as six percent, and now some of those losses are being recouped, but never the lesser negative reaction

to the report. The good number was the company now expects to earn as much as ten point five billion before interest. This is higher than their previous podcasts for refrained from raising. Therefore your profit outlook. They said that they round war pushed an energy and commodity press, so that's the big problem. There were some bright spots. They said their SUVs like Explorer and Expeditions are particularly strong.

They're doing well, but in the end, we're all relying on commodity prices, even as some of them models are doing quite well.

Speaker 2

All right, let's go l l Y.

Speaker 1

Yeah, weight loss drugs are doing great. Eli Lilly's surprise Wall Street by raising its annual sales and profit forecast. There is obviously this rapid competition between Eli Levy and Novel Nordisk, but now it seems like their fortunes are diverging a little bit. So what we're seeing from Eli Lelly the stock is of nine percent. This comes after demand fred Basity Medications Sort and thousands of patients started

taking its new weight loss pills. Of course, press have been falling down, so there was a lot of tension whether this company will continue to sort to new highs. It's been under a lot of precious since November. It's twenty three percent, but now there is some new optimism interesting.

Speaker 2

Space to watch the stock mover's report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street and for the latest market moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg dot com, and on Applecarplay and Android Auto with the Bloomberg Business app.

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